Bitcoin Drops by 3% Today, Reigniting Fears of a Crash Below $80k Before Liberation Day

Bitcoin is down by 3% today, reigniting fears that it could drop below $80k before the Liberation Day. The legacy coin has been trading around November levels for the whole of March.

Bitcoin price slipped by 3% on the last day of March to hit a 3-month low of $80,200.

The legacy coin has been trading around November levels for the whole of March, and a closer look at the crypto industry and on-chain analysis of the digital asset reveals that investors are mostly bearish about its immediate price action.

This has reignited fears that BTC may crash below $80k before or as soon as Trump enforces reciprocal tariffs on Liberation Day.

The price drop is in anticipation of what promises to be the largest wave of tariffs imposed by the US on its trading partners.

President Trump is expected to announce the reciprocal tariffs on Liberation Day in April 2. A few days later, the 25% tariffs on automakers from Canada and Mexico that had been put on hold a month ago will also take effect.

Throughout this quarter, tariffs have had a devastating impact on Bitcoin, making this the worst Q1 for BTC since 2018.

Tariff Fears Dampen Stream of Positive News

Before the fear of tariffs turned the Bitcoin investor sentiment bearish, the coin had enjoyed close to two weeks of positively bullish news.

These included a 10-day streak of net inflows. And just last week, more than 30k Bitcoins were taken off crypto exchanges.

Additionally, Strategy and MetaPlanet reiterated their bids to acquire more BTC. All these bullish catalysts were supposed to trigger a rebound for BTC, but the fear of tariffs has dampened bullish momentum the news would have generated.

The Next Price Action for Bitcoin

As always, we remain bullish about Bitcoin’s future price action and are still convinced it has what it needs to break above $156,000 before year-end.

However, the upcoming announcement of reciprocal tariffs makes its price for the next seven days highly unpredictable.

Ultimately, the crypto market’s reaction will be primarily determined by the extent of these tariffs. Even then, key indicators have already started hinting at a bearish price action for BTC.

On the daily timeframe, RSI for the top coin has crashed from a high of 52 last week to 40 today. The MACD line has also abandoned its uptrend and is currently crossing the signal line from above and dipping further into the negative territory.